The reasons behind this loss? You all know it by know, and so does Ford. “Like the rest of the industry, Ford Motor Credit continues to be affected by credit market constraints, reduced vehicle sales, low consumer confidence, and job contraction in difficult economic conditions,” Mike Bannister, Ford Motor Credit chairman and CEO said.
“However, we continue to provide consistent levels of support to Ford Motor Company dealers and customers in the downturn through our strong business and prudent lending practices,” added the official.
As for Ford Motor itself, the company posted a net loss of $1.4 billion, or $0.60 per share, for the same first quarter. The manufacturer's operating loss was roughly $2 billion, way down from the $686 million profit a year ago.
“Our results in the first quarter reflected the extremely difficult business environment and weak demand for autos around the world,” Ford CEO Alan Mulally said. “Despite the challenges, Ford made strong progress on our transformation plan by gaining share with strong new products, slowing operating-related cash outflows, reducing outstanding debt, lowering our structural costs and reaching new agreements with the UAW.”
Both of the companies that make up Ford have taken steps to reduce debt obligations by $10.1 billion at par value and lower the company’s annual cash interest payments by more than $500 million, including a deal with the UAW to cut overall labor costs by $500 million annually.
Ford Motor has announced a new buy-out program for hourly workers, set to come into effect in the second quarter of the year.
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